Use the Following to Answer Questions

question 308

Multiple Choice

Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y₁ in panel (a) , to return to potential output at Y_P policy makers should use:

• A) contractionary policy.
• B) expansionary policy.
• C) policies to shift the SRAS to the left.
• D) policies to shift the LRAS to the left.

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Definitions:

Processing Speed

The rate at which an individual can complete mental tasks and interpret information, affecting cognitive functions.

Babbling

An infant’s repetition of syllables such as “ba-ba-ba-ba” and “ma-ma-ma,” which begins at about 6 months of age.

Native Language

The first language a person learns from birth, often used within the family and community setting.

Language Learning

The process through which individuals acquire the ability to comprehend and communicate in a language.